Japan’s Laws Do Not Require Disclosure of Political Crypto Donations


Cryptocurrency in Japan is quite vibrant and the government has not haunted the sector like other governments in several other regions have been doing recently. To make things even better, Japan’s Internal Affairs and Communications Minister, Sanae Takaichi, has now said all donations received by political figures in crypto, are not subject to Japan’s Political Funds Control Act, and do not have to be disclosed.

Speaking at a news conference, Takaichi said donations in digital currency are not only legal, but can also go undisclosed. However, there is the possibility that the leeway might no longer apply as soon as the crypto is exchanged for fiat. Laws in the country do not allow politicians to receive donations in any fiat or in securities. Takaichi did not offer any clarification on whether or not the leeway ends with conversion to fiat.

Japan allows cryptocurrency transactions but can be a bit stern regarding exchange firms. The only requirements for exchanging the Japanese Yen to crypto and vice versa, are local bank accounts and a valid means of identification. However, regulators have created a pretty strong set of rules to govern cryptocurrency exchange firms. This is probably because Japanese exchanges have recorded epic collapses in the past, with millions of dollars in crypto belonging to customers, completely lost. One of the biggest collapses in the entire sector all over the world, is the popular Mt Gox exchange which was based in Tokyo.

Back in May, the Japanese Financial Services Agency (FSA), recognized crypto exchange traded funds, stating that Japan should not be left behind.

Image Credits: Pixabay

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